The ceremony served in part to show continuity from Benedict to Francis amid continued nostalgia from some conservatives for Benedict's tradition-minded papacy.
Francis had invited the entire Vatican Curia, or bureaucracy, to celebrate Benedict's anniversary, and prelates turned out in force for the rare occasion of being able to greet each man in white.
The audience took place in the Clementine Hall of the Apostolic Palace, the same marble and fresco-filled room where Benedict bid a final farewell to his cardinals on February 28, 2013, becoming the first pope in 600 years to resign.
Benedict thanked Francis for letting him live out his final years in the beauty of the Vatican gardens, where he said he felt "protected."
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"Thank you, Holy Father, for your goodness, which from the first moment of your election has struck every day of my life," Benedict said, speaking without notes.
"We hope that you can go forward with all of us on this path of divine mercy, showing us the path of Jesus toward God."
Francis has recently dismissed new questions about the implications of Benedict's resignation by insisting that there is only one pope, himself, and that Benedict had pledged his obedience on the day he resigned.
He told reporters this weekend he felt that Benedict "had my back" and was continuing to help the church through his prayers. He added he had heard that Benedict had even sent away some nostalgic faithful who had come to him complaining about the "new pope."
Benedict listened intently as Francis addressed him as "Your Holiness" lauding his 65 years of service to the church and saying his decision to retire to a life of quiet prayer to a small monastery in the Vatican gardens was a very "Franciscan" thing to do.